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    • New Mexico Enterprise Content Management (ECM) Project Also known as Electronic Document Management System (EDMS) Business Case for FY08 ____________________________________________ Executive Sponsors – Conny Maki, HSD CIO, Lead Agency Sandra Jaramillo, SRCA Director John Salazar, TRD CIO Liz Stefanics, GSD/RMD Director / Karen Baltzley, GSD CIO Nancy Knouse, OSE CIO Mike Mier, DPS CIO Elisa Storie, NMCD CIO Project Director, Jane Hamlet Original Date: August 17, 2006 Revision Date: September 29, 2006 Revision 3.1: Updated to add agencies Prepared By: Jane Hamlet
    • TABLE OF CONTENTS Enterprise Content Management (ECM) Business Case..........................................................................................3 Executive Summary....................................................................................................................................................3 Background, Industry Trends................................................................................................................................4 Business Problem and Opportunity...........................................................................................................................5 Potential Consequences of Inadequately Managing Records in the Electronic Age............................................6 Opportunity...........................................................................................................................................................7 Accomplishments and Goals......................................................................................................................................7 Accomplishments during FY05............................................................................................................................7 FY06 Accomplishments........................................................................................................................................7 FY07 Project Goals...............................................................................................................................................7 Proposed Project Objectives/Performance Metrics..................................................................................................8 Overall Project Objectives....................................................................................................................................9 Agency Objectives................................................................................................................................................9 HSD Child Support Enforcement Division.........................................................................................................10 SRCA Centralized Electronic Records Repository.............................................................................................11 Taxation and Revenue Department – REAL ID Act...........................................................................................11 GSD Risk Management Division........................................................................................................................12 Office of the State Engineer and Interstate Stream Commission........................................................................12 Department of Public Safety...............................................................................................................................13 New Mexico Corrections Department.................................................................................................................13 Objectives aligned with the Enterprise IT Strategic Plan...................................................................................15 Business Risks..........................................................................................................................................................17 Alternative Solutions................................................................................................................................................18 Costs Benefit Analysis..............................................................................................................................................20 Total Cost of Ownership.....................................................................................................................................20 Benefits for Each Agency...................................................................................................................................21 Costs and Risks Associated with Each Agency..................................................................................................21 Statewide Benefits available during FY09 and beyond......................................................................................25 ROI Discussion...................................................................................................................................................26 PNM: ROI = 105% and Payback Period = 11 months.......................................................................................27 Implementation Approach and Timeline..................................................................................................................28 Strategy Statement ..............................................................................................................................................28 Project Work Categories.....................................................................................................................................30 Governance and Resource Assumptions.............................................................................................................33 Independent Validation and Verification (IV&V)..............................................................................................34 Project Timeline..................................................................................................................................................34 Recommendation......................................................................................................................................................35 APPENDIX A – Conceptual Architecture................................................................................................................36 APPENDIX B – Financial Estimates.........................................................................................................................38 APPENDIX C – Project Timelines............................................................................................................................40 ECM-EDMS FY08 Form C2......................................................................................................................................43 Page 2 of 43 businesscasefy08doc212.doc
    • Enterprise Content Management (ECM) Business Case This request is an extension of an Electronic Document Management System (EDMS) project initially funded in the General Appropriation Act of 2004 submitted by three agencies, the Human Services Department (HSD), Taxation and Revenue Department (TRD) and the Commission of Public Records - State Records Center and Archives (SRCA). The project funded in 2004 for expenditure in FY 2005, was extended through FY 2006 and FY 2007. The initial project funding provided for: 1) an assessment of the electronic records environment in State government; 2) establishment of functional and technical requirements for an Electronic Document Management System (EDMS); and 3) the implementation of an EDMS at HSD and TRD that could serve as a standard for all State agencies. This project was conceived when the generally accepted industry terminology was Electronic Document Management System (EDMS.) However, there has been significant change in the EDMS marketplace and the term Enterprise Content Management (ECM) is now the industry standard for a combination of functions that includes: document imaging, electronic document management, electronic records management, web content management and email archiving. Executive Summary State agencies are increasingly relying on information technology to manage work; make decisions; carryout business processes; and as the primary means of communication. Many business transactions that were once paper-based are now being performed electronically. While agencies continue to generate paper, most records are being created electronically, remaining in an electronic format for at least a portion of their life cycle. The shift from a paper to an electronic record-keeping environment requires a viable solution to manage the large quantity of computer-based information that is created by State agencies in accordance with State and federal laws. The Public Records Act defines a public record as any book, paper, map, photograph or other documentary materials regardless of physical form or characteristics, made or received by an agency in pursuance of law or in connection with a business transaction. While many State agencies have established records management programs for paper records, most do not have active records management programs for electronic public records. “It is estimated that more than 90% of the records being created today are electronic. Coupled with the overwhelming growth of electronic messages - most notably e-mail and instant messaging - the management of electronic records has become a critical business issue.”1 While more and more business records are created electronically in the State of New Mexico, at the present time the State Records Center and Archives (SRCA) does not have the resources to provide a standardized method to capture, store, manage, and retrieve electronic records for the various State agencies. SRCA is continuing to store paper records in large warehouses in Santa Fe and Albuquerque; these warehouses are at capacity and more warehouse space is needed. A more effective solution is to implement a Centralized Electronic Records Repository (CERR). The Enterprise Content Management solution will integrate Agency’s document management systems with the Centralized Electronic Records Repository. Providing the ability to manage electronic records is fundamental to moving the State of New Mexico into the next technology generation. 1 ARMA International, The Association of Records Management Professionals, www.arma.org Page 3 of 43 businesscasefy08doc212.doc
    • Background, Industry Trends The State of New Mexico ECM-EDMS project was conceived when the generally accepted industry terminology was Electronic Document Management System (EDMS). The term Enterprise Content Management (ECM) has become the industry standard for a number of distinct but related applications including document imaging, document management, records management, workflow management and web content management. What is content? Content encompasses document images, papers, books, maps, email, web sites, photographs, maps, e-forms, audio and video. From GARTNER Research: “Enterprise content management (ECM) will be the strategic foundation of a new model for user communities. A profound shift in the document and content management markets will affect the way users make purchases. ECM has emerged after 10 years of market consolidation.2 “Today, ECM encompasses the following core components: o Document capture and document imaging for capturing and managing paper documents o Document management for check-in/check-out, version control, security and library services for business documents o Web content management for automating the Webmaster bottleneck, and managing dynamic content and user interaction o Records management for long-term archiving and the automation of retention and compliance policies, and to ensure legal or regulatory record compliance o Document-centric collaboration for document sharing and supporting project teams o Workflow for supporting business processes and routing content, assigning work tasks and states, and creating audit trails “ECM can also include: o Integrated document archive and retrieval systems for documents and reports o E-forms for exchanging electronic content o Digital asset management for storing and managing rich media content o E-mail archiving and e-mail management for retaining electronic communications in support of compliance.” This diagram shows the various technology tools included in Enterprise Content Management (ECM) solutions offered by vendors. Enterprise Content Management Document Document Records Document- Workflow Web Content Imaging Management Management centric Management Management Collaboration Integrated Digital Asset e-Forms Document Archive Email Archiving Management Processing & Retrieval ECM Components 2 “ECM Suites Emerge From Industry Consolidation,” GARTNER Research; Publication Date: 11 November 2004 Page 4 of 43 businesscasefy08doc212.doc
    • Business Problem and Opportunity In March 2005, the EDMS Executive Steering Committee consisting of three agencies, HSD, SRCA, and TRD contracted with Optimos Inc., to perform a Needs Assessment. A survey of selected State agencies was initiated to determine current records management practices. In addition to sending out a worksheet/survey, Optimos directly interviewed most of the responding agencies to help answer any questions as well as to get a more direct view of some of the concerns and challenges relating to electronic records. Key findings from the Optimos “Report on Current Records Management Practices,” indicated, "there is a wide range of capability and understanding of records management among State agencies. There are also a wide range of IT systems in place, as well as differing amounts of paper intensive business process" and that "the best outlook for maintaining electronic records and ensuring in-house or public access of the records will require that the State of New Mexico set standards and common practices for record processes. These standards include rules, roles and responsibilities associated with the record lifecycle."3 The Optimos report also stated, “…the most often raised comment regarding records management in general and electronic records management specifically, was that agencies do not feel that they are adequately funded to deal with this issue. IT departments especially do not want to be in the business of managing records, preferring to leave that responsibility to the operational units." Government offices are now in the midst of a transition from paper-based to all-digital recordkeeping environments. Electronic records must be maintained and managed just as any other public record in paper format. Effectively managing the accumulation of electronic records created by State agencies will require the establishment and implementation of standards, policies, procedures, and controls. Without proper management, recorded information and necessary data remain inaccessible and are eventually lost. Records managed systematically are; complete, trustworthy, accessible, and available to serve current and future management needs. When maintained and controlled systematically, records are an asset; when managed in a haphazard manner, they are a liability. The success or failure of government programs relies heavily on the records and information used as basis for decisions made by State officials and for compliance with regulations. There are costs associated with not being able to locate needed records in a timely manner, especially during litigation, as well as risks and costs associated with records being retained long past their usefulness. This business case addresses the need for implementation of a Centralized Electronic Records Repository (CERR) and the standards to define, capture and manage electronic public records. The SRCA serves as the central repository for all New Mexico State government records. Storage for inactive paper and microfilm records is provided at no charge to State agencies. However, at this time, the SRCA does not have the resources to provide a standardized method to capture, store, manage, and retrieve electronic records for the various State agencies. Many of the State's electronic public records reside in State employees PC's, laptops, and E-mail boxes, and in websites and databases. This decentralized approach to capturing, storing, managing, and retrieving the State of New Mexico’s electronic records has resulted in a lack of standards and a wide variety of tools and techniques being used. Access requirements in response to the Inspection of Public Records Act requests have created a need to improve current electronic record storage and management methods and procedures. 3 "Process Recommendations and Requirements - Deliverable 3," Optimos Inc., May 10, 2005. Page 5 of 43 businesscasefy08doc212.doc
    • Potential Consequences of Inadequately Managing Records in the Electronic Age Consider the possible risks to NM State agencies in not actively managing electronic records, such as: • Inability to retrieve and productively use business critical information on a daily or historic basis; • Loss of strategic opportunities due to the inability to recognize or leverage valuable information; • Increased costs of doing business from inefficiencies related to disparate or inaccessible data; • Failure to comply with statutory or regulatory retention and disposition requirements; • Reduced ability to comply with court orders and other litigation-related imperatives requiring access to existing information; • Inability to respond promptly to government inquiries. The consequences of a failure will vary depending upon the circumstances, but could range from minor to catastrophic: • Inefficient service to State constituents; • Regulatory fines and penalties, which have recently reached eight figure amounts;4 • Civil litigation consequences, such as increased litigation costs and fines;5 • Vicarious liability for responsible senior management;6 and, • Criminal liability for agencies and individuals. The key management challenge is to weigh the benefits (both in terms of goals achieved and risks diminished) against the potential costs of the various approaches to managing electronic documents and records. This is often described as a “cost-benefit” or ROI (i.e., return on investment) analysis. The increased scrutiny in the regulatory and litigation arenas, combined with the significant complexities of managing electronic and records, can substantially affect ROI calculations, weighing in favor of an Enterprise Content Management solution. 4 E.g., Bank of America was fined $10 million in March 2004 for allegedly misleading regulators and stalling in producing evidence in an investigation of improper trading at its securities brokerage. In the Matter of Banc of Am. Sec. LLC, SEC Admin. Proc. File No. 3 11425, Exchange Act Release No. 34 49386, 82 SEC Docket 1264 (Mar. 10, 2004), available at http://www.sec.gov/litigation/admin/34-49386.htm; 5 E.g., United States v. Philip Morris USA, Inc., 327 F. Supp. 2d 21, 26 (D.D.C. 2004) ($2.75 million sanction for failure of 11 employees to follow litigation hold requirements for e-mails); SEC v. Lucent Technologies Inc., SEC Accounting & Auditing Enforcement Release No. 2016, 82 SEC Docket 3224 (May 17, 2004) ($25 million); In the Matter of Banc of Am. Sec. LLC, SEC Admin. Proc. File No. 3 11425, Exchange Act Release No. 34 49386, 82 SEC Docket 1264 (Mar. 10, 2004) ($10 million); In re Prudential Ins. Co. of Am. Sales Practices Litig., 169 F.R.D. 598, 617 (D.N.J. 1997) ($1 million). 6 Senior management may be identified by the courts with respect to failings in an organization’s handling of its records. United States v. Koch Indus. Inc., 197 F.R.D. 463, 483-86 (N.D. Okla. 1998); In re Prudential Ins. Co. of Am. Sales Practices Litig., 169 F.R.D. 598, 615 (D.N.J. 1997). Page 6 of 43 businesscasefy08doc212.doc
    • Opportunity The ECM solution and multi-agency collaboration supports Governor Richardson's initiatives, including IT consolidation, reducing the cost of operating government and improving customer service. The ECM solution is in alignment with the NM IT Enterprise Architecture, including security, disaster recovery and business continuity. Collaboration across agencies provides significant benefits in sharing ECM project expertise and lessons learned. An ECM solution will provide mechanisms to manage agency records as required by law throughout their life cycle, that is, from their creation, to their maintenance and use, and then to their ultimate disposition. Accomplishments and Goals The ECM-EDMS Project accomplishments during FY05, FY06 and the FY07 project goals are outlined below: Accomplishments during FY05 • October 2004 – Project Certified for Planning Phase; • April 2005 – Project Director hired; • June 2005 – Needs Assessment Completed for Electronic Records Management; • June 2005 – Project Management Plan Approved by Executive Steering Committee; FY06 Accomplishments • July 2005 – NM ITC Certification for Implementation Phase; • August 2005 – ECM-EDMS cross-agency requirements workshops completed; • September 2005 – ACF Federal Financial Participation Approval for EDMS Project; • September to November 2005 – Request for Proposal (RFP) Drafted; • December 2005 – NM Judicial EDMS Project, RFP Evaluation Committee chose ECM vendor - Hummingbird; • March 2006 – The EDMS Executive Steering Committee (ESC) approved Hummingbird as the selected ECM software. Based on Hummingbird responses to the questions in the ECM Requirements Matrix and the ECM vendor demonstrations, the ECM software meets the HSD and TRD requirements for document imaging and electronic document management; • March 2006 – Project Website approved – www.ecm-edms.state.nm.us; • June 2006 – ECM Architecture Design completed and approved by the EDMS ESC; FY07 Project Goals The following goals are scheduled for FY07 (see attached ECM-EDMS FY07 Timeline): • July 2006 – Issue CVRs for TRD and HSD ECM Implementation Services; • July 2006 – Complete workflow mapping for HSD Child Support Payments; • August 2006 – Complete workflow mapping for TRD Motor Vehicle Citations; • August 2006 – ECM Architecture Design approval by the IT Architecture Committee; Page 7 of 43 businesscasefy08doc212.doc
    • • September 2006 – Submit ECM Application and Metadata Standards for approval by IT Domain Teams; • August 2006 – Independent Validation & Verification Services Procurement; • August 2006 - Procure ECM Integration and Implementation Services; • September to October 2006 – Finalize solution design for Child Support Remittance; • September to October 2006 – Finalize ECM solution design for Motor Vehicle Citations; • November to December 2006 - Hardware and Software Procurement; • December 2006 to January 2007 – ECM Hardware and Software Installation; • January to February 2007 – ECM Integration and Workflow setup; • February to March 2007 – Testing; • March 2007 – Training; • March 2007 – Implement into Production environment & transition to maintenance; • April 2007 – Project Certification for Phase 3 – Closeout activities; • May to June 2007 - Project Closeout;  Perform Operational and Administrative Management activities;  Refine the Rules and Standards for electronic records management, developing agency training plans, clarifying content ownership, creating a content management strategy and establishing a Content Review Board for metadata standards;  Define an Enterprise Model to include Enterprise Service Provider (ESP) role, organization and processes; Business Process Reengineering; Enterprise Identity Management; and Enterprise Data Interchange within a Service Oriented Architecture. Identify ECM as one component of an Enterprise Model allowing the State of New Mexico to move towards a fully electronic services interface for our technology-enabled customers. Proposed Project Objectives/Performance Metrics The vision for the State of New Mexico is to implement an Enterprise Content Management solution that includes the integration of an EDMS with an Electronic Records Management System (ERMS) that will serve as the Centralized Electronic Records Repository (CERR). The purpose of this project is to implement an integrated approach for the capture, maintenance, storage, access, disposition and preservation of electronic records. Each participating agency will manage and control access to its own documents while automatically transferring electronic records to and from the CERR. Just as with hardcopy records, not every agency has built its own records warehouse, so with electronic records there are tangible benefits to having a single electronic records repository managed according to established records, archival management principles, and best practices. Overall project objectives, as well as agency specific objectives are discussed in the following paragraphs. Page 8 of 43 businesscasefy08doc212.doc
    • Overall Project Objectives Fiscal Year 2008 overall objectives for the ECM-EDMS project include: • Integrate records management functions into agency work processes, IT enterprise architecture and information systems; • Reengineering State government business processes is fundamental to implementing Enterprise Content Management solutions. Content, documents and document management are inherent within the State of New Mexico business processes; • Continue working with the General Services Department / Information Systems Division (GSD/ISD) toward IT Consolidation and building a data center model, based on industry best practices. A solid data center model provides an opportunity for centralized IT infrastructure management of the ECM solutions; • Continue updating ECM Application and Metadata Standards based on best practices, Agency input and lessons learned. Agency Objectives Seven agencies propose ECM objectives; summarized here and detailed on the next pages: • The Human Services Department (HSD) objectives for FY08 are to enhance the implementation of the Electronic Document Management solutions for HSD Child Support Enforcement Division (CSED) implemented in FY07; • HSD is leveraging maximum Federal Financial Participation (FFP); • The State Records Center and Archives (SRCA) intends to implement a Centralized Electronic Records Repository (CERR); also known as an Electronic Records Management System (ERMS) - one component of the ECM solution; • The Taxation and Revenue Department (TRD) intends to implement ECM solutions to support ‘REAL ID’ federal requirements for personal identification documents; • The General Services Department / Risk Management Division (GSD/RMD) intends to roll out document imaging & management in phases: Phase I – Workers’ Compensation (Active & New) & Contracts; Phase II – Legal, Employee Benefits & Workers’ Compensation (Closed Onsite Files); Phase III – Loss Control, Workers’ Compensation (Closed Offsite Files); Phase IV – Property & Casualty Workers’ Compensation (Closed Offsite Files); • The Office of the State Engineer (OSE) intends to implement ECM solutions for Water Administration Technical Engineering Resource requirements as well as integration with the OSE Enterprise Geographical Information System (GIS); • The Department of Public Safety (DPS) intentions for FY08 are to procure contractual services to perform an assessment of DPS needs for document imaging, document management and records management. This is in preparation for a potential FY09 DPS project for ECM integration and implementation. • The New Mexico Corrections Department (NMCD) intends to procure contract services to perform a needs assessment for electronic document management and electronic records management. The outcome of the needs assessment is a prioritized plan for implementing ECM solutions within the NMCD. The needs assessment completed in FY08 prepares NMCD to begin implementing ECM solutions proposed for FY09. There are two components of the Needs Assessment, 1) Business Needs Assessment, and 2) Infrastructure Assessment. Each of the seven agencies specific ECM objectives for FY08 are detailed below: Page 9 of 43 businesscasefy08doc212.doc
    • HSD Child Support Enforcement Division The HSD objectives for FY08 are to enhance the implementation of the Electronic Document Management solutions for the HSD Child Support Enforcement Division (CSED). The FY06- FY07 ECM project objectives focused specifically on the State Disbursement Unit (SDU) Child Support Remittance Processing within HSD. Improvements to service delivery and reduction in paper-intensive processes for CSED planned during FY08 include: • Application for Services; • Postal Certification and Location Verification Letters; • Information Letters; • Court Orders. Applications for services are received through the current public Child Support Enforcement System (CSES) Web interface, via the mail and walk-in paper applications. Entry of the paper applications into CSES is a time-consuming manual process that can be improved with the implementation of ECM solutions. Maintaining current addresses for non-custodial parents and verifying addresses supplied by custodial parents is a frequent task performed by the CSED field offices. Currently, a standard postmaster general form is generated by the CSES application. This form is mailed to the appropriate postmaster general for confirmation and returned via United States Postal Service (USPS) mail. The data is manually entered into CSES and this can be automated with ECM. Standard format information letters are also created from the CSES application that request information from the custodial parents necessary for case initiation and case establishment. Currently, when the paper information packet is returned to CSED, selected data is manually entered into CSES and the paper documents are filed in the case file at the appropriate office. Court Orders for Child Support payments (paper documents) are kept in the case files in each regional office. When a State constituent goes into a regional office, the process to retrieve requested information generally takes three to five days: • First the document is requested via telephone; • Staff then researches the document location; • Then the document is either faxed or mailed to the regional office; • The constituent must return another day to pick up the requested document. Documents can be retrieved electronically in three to five seconds, instead of three to five days, with the implementation of the Enterprise Content Management solutions. This capability alone will significantly improve the service delivery to constituents. Page 10 of 43 businesscasefy08doc212.doc
    • SRCA Centralized Electronic Records Repository The State Records Center and Archives (SRCA) objectives for FY08 are to implement the Centralized Electronic Records Repository (CERR) for the State of New Mexico. The solution supports managing electronic records according to statutory requirements, and integrates records management functions into agency work processes, information systems and the enterprise architecture. The ECM solution includes the integration of Electronic Document Management Systems with an Electronic Records Management System (ERMS) that will serve as the CERR. Both EDMS and ERMS are concerned with the content and context of information and defining who has access to the information and what they can do to it. The difference is that document management focuses on document creation and process improvements, while records management is concerned with capturing and preserving records according to an agency’s records retention and disposition schedule and the ultimate disposition of the records. Each agency will manage and control access to its own documents while transferring inactive electronic records to and from the CERR. There are tangible benefits to having a single electronic records repository managed according to established records and archival management principles and best practices. Electronic records retention is the cornerstone of data life cycle management and may be defined as the act of retaining computer-based records in digital storage media for specified, predetermined periods commensurate with their value, with subsequent disposal as determined by State laws and records management rules established by the SRCA. Electronic records must be managed in a manner that preserves the integrity of the record and facilitates electronic access to the record now and into the future. The CERR will provide mechanisms to manage agency records as required by law throughout their life cycle, from their creation, maintenance and use, and ultimate disposition, either destruction or permanent preservation. SRCA must have a viable solution to manage the large quantity of electronic documents and content that is stored in personal computers, email boxes, mainframes and servers. The shift from a paper to an electronic record-keeping environment leads the State to be potentially out of compliance with State and federal laws. The implementation of an integrated approach for the capture, maintenance, storage, access, disposition and preservation of electronic records has become a requirement that must be addressed in a timely manner. Taxation and Revenue Department – REAL ID Act The REAL ID Act passed into law by President Bush May 11, 2005 is “To establish and rapidly implement regulations for State driver’s license and identification document security standards...” This will require States by 2008 to overhaul and upgrade their driver’s licenses and issuance processes, and build a linked network to house information proving the identity of hundreds of millions of driver’s license holders. The REAL ID Act calls for anyone applying for a license to present a photo identity document, documentation of birth, proof of Social Security Number and proof of name and address. States must then verify each document ranging from birth certificates to utility bills, with the documents’ issuing agency, and keep digital copies. The multiple systems required to handle these tasks include scanning and keeping archival records of all the documents. The ECM solution provides the document scanning, document management and archival records management components to support the other systems required to comply with the REAL ID Act. Page 11 of 43 businesscasefy08doc212.doc
    • GSD Risk Management Division The GSD Risk Management Division (GSD/RMD) has identified opportunities to improve the management of paper business processes for six out of seven bureaus within the Risk Management Division. Those bureaus are workers’ compensation, contracts, loss control, legal, property and casualty, and employee benefits. All of these bureaus deal with paper documents, onsite file storage, as well as off site file storage. GSD/RMD prioritizes their document imaging and management needs into planned phases: • Phase I – Workers’ Compensation (Active & New); • Phase II – Legal, Employee Benefits & Workers’ Compensation (Closed Onsite Files); • Phase III – Loss Control, Workers’ Compensation (Closed Offsite Files ); • Phase IV – Property and Casualty Workers’ Compensation (Closed Offsite Files); Worker’s Compensation deals with on the job injury claims. Claims involve forms, medical history, medical treatment notes, mediation, judge’s rulings and much more. Additionally, a claim can be closed but the file is stored for any future related injuries until the death of the claimant. Workers’ Compensation can be grouped into three categories described below; these are incorporated into the four phases outlined above: • Closed Offsite Files – dates range from the 1970’s to 1994, with an estimated 1,000 boxes of files. These will be the most challenging to manage given the condition of the paper, type of paper and file organization that run the gamut of good to bad. • Closed Onsite Files – dates range from 1995 to current, estimating 50-60 boxes per fiscal year, representing about 2200 cases each fiscal year, of which half are documents that need to be joined with files in offsite storage. • Active Files – approximately 2000 files are active open cases, with 10 staff carrying an average caseload of 200. Additionally, this category involves new claims that are received daily. Active and New Workers’ Compensation business processes are priority for implementing document imaging, electronic document management and workflow management. The GSD Risk Management Division business processes are paper intensive. Substantial GSD/RMD business process improvements are achievable through implementing document scanning, electronic document management and electronic records management. Office of the State Engineer and Interstate Stream Commission The following Office of the State Engineer and Interstate Stream Commission (OSE/ISC) business processes and technology systems can achieve significant process improvements through the implementation of integrated Enterprise Content Management (ECM) solutions: • The Water Administration Technical Engineering Resource System (WATERS) - a non-graphical system to access water right information; • The Enterprise Water Administration Technical Engineering Resource System (eWATERS) - provides web based system to access water right information; • The Internet Water Administration Technical Engineering Resource System (iWATERS) - uses the web browser to access water right information; • Litigation Management includes the discovery process, evidence organization, and search capability. Concordance is the OSE system used to manage litigations from beginning to end. Page 12 of 43 businesscasefy08doc212.doc
    • The OSE has the Data Capture Web based software from Datacap, Inc. and FEITH Document Database (FDD) from FEITH Systems and Software. OSE staff develops and continues to maintain integration between its business systems and disparate document management systems. The OSE/ISC desires to achieve substantial process improvements through ECM solutions including providing improved service to customers, increasing the productivity of clerical, professional and management staff, and providing integration and access to OSE/ISC files and data systems from individual workstations and Internet users. Department of Public Safety The recommendation is for the Department of Public Safety (DPS) to procure contract services to perform a needs assessment for electronic document management and electronic records management. The outcome of the needs assessment is a prioritized plan for implementing Enterprise Content Management (ECM) solutions within the DPS. The needs assessment completed in FY08 prepares DPS to begin implementing ECM solutions proposed for FY09. There are two components of the Needs Assessment, 1) Business Needs Assessment, and 2) Infrastructure Assessment. The goal of the Business Needs Assessment is to gather basic information on what content, documents and records the system will (and will not) manage. Defining the scope will establish what end users can expect the system to accomplish. Stakeholders for each bureau within DPS are involved in the Needs Assessment. Another goal is developing an inventory of the various types of DPS documents, content and records from Input, through Processing to Output. The contractor develops high level ‘As-Is’ workflow maps; this initiates business process reengineering and change management. The result of the needs assessment determines the project priorities and scope. The Infrastructure Assessment involves identifying the unique agency infrastructure or architecture that could result in unique requirements for the ECM system. The DPS infrastructure needs to align with an enterprise-wide IT architecture that provides the baseline for the existing infrastructure and lays the foundation for future infrastructure improvements. Any ECM system must fit within the existing infrastructure as well as the IT enterprise architecture. The Department of Public Safety’s desired outcomes include improving productivity, achieving cost savings, and improving service delivery to constituents through the implementation of Enterprise Content Management solutions in alignment with the NM IT Enterprise Architecture. New Mexico Corrections Department The New Mexico Corrections Department (NMCD) currently has several business processes that utilize manual record keeping based on the information stored in paper documents. These processes and the records that are managed could greatly improve by utilizing an Electronic Document Management System. One such process is the tracking of Judgment and Sentence documents generated by the courts. This document is used by NMCD to calculate length of sentence, and release dates. The documents are stored at the facilities where the offender is currently housed in the offender jacket. This Jacket/folder contains all manual documents regarding all his activities while incarcerated. Currently this document arrives at NMCD with the offender as he is accepted into the jurisdiction of the Corrections Department. This has made it difficult for NMCD Legal Division to quickly review the document to ensure NMCD has calculated release dates correctly. NMCD is submitting this business case to seek funding for a Business Needs Assessment for an ECM project. The goal of the Business Needs Assessment is to gather basic information on what content, documents and records the system will (and will not) manage. Defining the scope Page 13 of 43 businesscasefy08doc212.doc
    • will establish what end users can expect the system to accomplish. Stakeholders for each bureau within NMCD will be involved in the Needs Assessment. Another goal is developing an inventory of the various types of NMCD documents, content and records from Input, through Processing to Output. The contractor develops high level ‘As-Is’ workflow maps; this initiates business process reengineering and change management. The result of the needs assessment determines the project priorities and scope. Studying the business process at NMCD determines what processes and records could be enhanced utilizing an ECM system. The Infrastructure Assessment involves identifying the unique agency infrastructure or architecture that could result in unique requirements for the ECM system. The NMCD infrastructure needs to align with an enterprise-wide IT architecture that provides the baseline for the existing infrastructure and lays the foundation for future infrastructure improvements. Any ECM system must fit within the existing infrastructure as well as the IT enterprise architecture. Setting realistic timeframes and project goals is another NMCD ECM project objective. Page 14 of 43 businesscasefy08doc212.doc
    • Objectives aligned with the Enterprise IT Strategic Plan Desired outcomes link to the State Enterprise IT Strategic Plan dated June 2005 as indicated in the following table: State Enterprise Content Management (ECM) Project State Strategy Tactics Outcomes ECM reduces costs and increases the efficiency of paper-based processes, especially the imaging and Identify common workflow components. ECM supports and enhances business processes, sharing of data from existing systems by improving functions, and data for access. ECM streamlines and integrates processes that sharing opportunities and cross business units, multiple applications, and agency streamlined data boundaries. According to GARTNER Research, Reduce cost management “Among the most prevalent processes for improvement of are accounts payable, accounts receivable, and case Government management.”7 Operations through IT An ECM solution increases accessibility to the State’s content. Therefore, a Statewide Identity Management program is a pre-requisite to rolling out ECM so that Establish unified identity personal information can be safeguarded. Keys to management for internal Identity Management are Authentication (proving that and external use you are who you say you are) and Authorization (now that we know who you are, determine permissions for the content you are allowed to access.) Reduce Cost As a multi-agency project, the goal is to implement an of IT Improve delivery of ECM that leverages existing experience in records Operation enterprise IT services management, document management and processes Through An within SRCA, TRD, HSD, GSD/RMD, OSE and DPS. Enterprise Initial estimates are for transitioning from current paper Model Improve management of based document processes to electronic processing. IT human resources Between two and four FTE can be re-deployed for each bureau or business unit. Identify communities of The ECM Project provides core solutions for improving Enhance interest within constituent service delivery within constituent services Delivery of services to develop Service to service delivery models Constituents An integrated framework for Electronic Document Establish an electronic Management & Electronic Records Management service delivery plan System is core to establishing an electronic service delivery plan. Make it easy to do Easier and more timely access to documents certainly business with State makes it easier to do business with State government government Support Promote development of An Enterprise Content Management solution provides Economic consolidated State-wide foundation components for a consolidated Statewide Development knowledge base to users knowledge base. of advanced technology, promote technology transfer and sharing 7 “Management Update: Client Issues for Enterprise Content Management, 2005,” GARTNER Research; Publication Date: 11 May 2005 Page 15 of 43 businesscasefy08doc212.doc
    • The desired outcomes also link to the following Governor’s Performance Recommendations (Moving New Mexico Forward dated August 2003 and Moving New Mexico Further Along dated August 2004): Recommendation Detail PORTAL – The State should ECM technology fully supports portal dynamic content and lays develop an Internet Portal for the foundation for an architecture that allows the user to interact computer users to make it with many applications that include static content. Implementing easier and more cost-effective an ECM solution is a co-requisite to successfully deploying the to obtain government services Statewide Portal. An Enterprise Content Management solution on-line and access a full range provides one foundation component to support a Statewide of public information Portal. Consolidate Information Consolidated IT Infrastructure management of the Enterprise Technology Services Content Management solution at a central location is supported by the cooperation between the Project Team and GSD/ISD. Page 16 of 43 businesscasefy08doc212.doc
    • Business Risks The following table identifies the risk, estimated level, mitigation note and explanatory comment. Risk Level Mitigation Comment Prioritize each agency’s Insufficient funding allocation means that either Insufficient funding request and some agencies requesting funds will receive $0 or High funding develop contingency agencies will not have enough to purchase plans to allocate funds hardware, software and implementation services Ensure Stakeholders are involved and support the Agency project. Ensure ECM- Lack of resources to complete project activities resource Medium EDMS implementation is can lead to delays in project schedule availability a priority among agency Project team members Federal and State requirements for oversight as well as the procurement process provide numerous opportunities for extended project Extended delays. For example: Timeline caused by • The Federal Administration for Children and High Plan for Fed/State Families (ACF) took nine (9) months to Approval approve the application for ECM-EDMS processes Federal Financial Participation funding • The procurement process for the ECM Architecture Design Contract took five (5) months to approve a $26,000 contract Keys to Identity Management are – • Authentication - proving that you are who you An ECM A Statewide Identity say you are increases Management program is • Authorization - now that we know who you accessibility a re-requisite to rolling are, determine permissions for the content High to the out ECM so that personal you are allowed to access State’s information is • Delegated Administration – Leaders in each content safeguarded. agency are responsible for securing access to their content. The task of assigning permissions is delegated to associates that know who is allowed access to what content. GSD process for Service Level Agreements needs GSD SLA's Continue to work with to be refined: and cost GSD to refine the SLA Medium • Cost structure methods undefined and/or not structure process and cost clearly communicated. methods structure methods • System downtime not within SLA criteria • Unexpected GSD charges to agency budget Insufficient funds to purchase a system to meet Ensure the project scope enterprise requirements – the project has not yet Limited Medium is defined within funding been funded adequately to build a Statewide Funding limits infrastructure, merely to ensure we build a baseline that is scalable Page 17 of 43 businesscasefy08doc212.doc
    • Alternative Solutions Three potential solutions to this problem include: 1) maintaining the current status, 2) developing an in-house Enterprise Content Management (ECM) solution, or 3) implementing a Commercial-Off-The-Shelf (COTS) solution. The following table details the choices: Alternative Discussion Cost Benefit Maintain Continued inability to archive electronic • Cost associated with Short-run cost current status records - paper-intensive processes inability to quickly retrieve deferment continue inefficient service to documents constituents • Lost documents and email not archived • Time and money for personnel to research paper or microfilm documents • Costs to replace obsolete microfilm equipment • Public Records in electronic format are lost/ misfiled/ destroyed before they are eligible for their disposition • IT staff lack the expertise to manage electronic records • Legal staff may lack the IT/Records Management knowledge to ensure records are authenticated • Current Electronic systems may not be legally defensible (i.e., which is the Official Copy of Record?) • Electronic records stored in multiple areas/sites • Current Electronic records do not have records management principles and techniques applied consistently Page 18 of 43 businesscasefy08doc212.doc
    • Alternative Discussion Cost Benefit Develop In- No organization today builds their own There are high costs None House ECM word processing application, they associated with developing an purchase Microsoft Word or Corel ECM. An application WordPerfect, which are far cheaper and development project would superior to anything that could be likely have at least some of the developed in house. Publicly licensed following tasks, if not more: software designed for mass consumption is generally superior to • Needs Analysis applications developed in house assessment primarily because of economies of • Document imaging R&D scale. The security features & reporting • Document mgmt R&D capabilities of an in-house solution will • Records mgmt R&D not be as robust, stable or as user • Web Content R&D friendly as a professionally developed • Workflow R&D application built by specialists. For • Security Design more than ten years, ECM Vendors • Database Design have honed their solutions. In addition, applications demand ongoing • Application Build maintenance, and in rapidly evolving • Application Testing markets like ECM, constant change. • Pilot Rollout This maintenance including bug fixes, • Beta Testing transitions to superior technologies, to • Production Rollout name a few - is a source of • Ongoing Maintenance organizational stress & in most cases best outsourced to specialists. A project of this nature is estimated to take at least two to three years to complete and cost between $10 &25 million. Purchase Purchasing a Commercial-Off-The-Shelf See APPENDIX B – Financial • Increased efficiency COTS ECM (COTS) Enterprise Content Estimates and productivity Management (ECM) solution provides through a well the State of New Mexico with the managed records Enterprise framework for the integration environment of Electronic Document Management • Ensure preservation Systems (ECM) with an Electronic FY05 & FY06 & F&07 Costs: of electronic records Records Management System (ERMS). of historical and $2,000,000 of which $800,000 informational value are Federal funds • Optimize agencies’ business processes, decreasing number of steps, saving FY08 Estimated Costs: time • Lower the cost of $5,070,000 of which $800,000 government are Federal funds • Improved service delivery to constituency Page 19 of 43 businesscasefy08doc212.doc
    • Costs Benefit Analysis Total Cost of Ownership Non-Recurring costs – The following table shows the initial estimated non- recurring costs for the FY05 through FY07 phases of the project. Refer to the budget worksheets in Appendix B for more details FY Item Purpose Costs FY05, Contractual Contractual Services include ECM Implementation Services for FY06, & Services HSD and TRD, as well as contract costs for the ECM Project $1,240,198 FY07 Director, and the Needs Assessment Vendor. IV&V contract costs are also included. FY07 Hardware Hardware includes Servers, Storage Devices, Network $400,000 Infrastructure for HSD and TRD FY07 Software Initial licensing for Document Imaging, Document Management, $359,802 Records Management software solutions FY05 & FY06 SUBTOTAL $2,000,000 FY08 Contractual Contractual Services include Needs Assessment for OSE, DPS; Services and NMCD; ECM Implementation Services for SRCA, HSD, TRD, GSD/RMD and OSE; as well as ECM Project Management $2,912,500 for HSD, SRCA, TRD, GSD/RMD, OSE, DPS and NMCD. IV&V contract costs are also included. FY08 Hardware Hardware includes Servers, Storage Devices, Network $1,221,394 Infrastructure for HSD, SRCA, and OSE FY08 Software Licensing for Document Imaging, Document Management, $936,106 Records Management & Workflow Management software FY08 SUBTOTAL $5,070,000 FY05 through FY08 TOTAL $7,070,000 Recurring costs – Recurring Costs begin during FY08 and beyond: FY Item Purpose Cost Maintenance Total FY08 ECM software The ongoing yearly estimated cost for maintenance ECM software maintenance is 18% of $359,802 18% $64,764 the initial FY07 software investment FY09 ECM software The ongoing yearly estimated cost for maintenance ECM software maintenance is 18% of $650,000 18% $117,000 the initial FY08 software investment FY09 ongoing software licensing estimate $181,764 Page 20 of 43 businesscasefy08doc212.doc
    • Benefits for Each Agency The benefits of implementing ECM and a well-managed records environment ensure that an agency can: • Increase efficiency and productivity through a well managed records environment; • Decrease costs for physical and electronic storage; • Lower the cost of government; • Optimize agencies’ business processes, decreasing the number of steps, saving time for workers; • Transfer permanent electronic records to the Centralized Electronic Records Repository for preservation and future use by government and citizens; • Improve service delivery to constituency • Document its policies, decisions, and outcomes to stakeholders and regulators; • Meet its legislative and regulatory requirements, including audits; • Protect itself in litigation; • Function in a financially and ethically accountable manner; • Protect State of New Mexico interests as well as the rights of employees, constituents, and other stakeholders; • Provide continuity of operations in an emergency or disaster; • Protect public interests and trust. Costs and Risks Associated with Each Agency Fiscal Year 2008 costs and benefits for the seven agencies, HSD, SRCA, TRD, GSD/RMD, OSE, DPS and NMCD are discussed below. Furthermore, there are potential risks related to insufficient funding allocation. Finally, long-term benefits are available during FY09 and beyond for any participating State agency. HSD Child Support Enforcement Division For FY08 the primary HSD ECM benefit is improving service delivery to constituents, while a secondary benefit is the re-alignment or re-deployment of staff currently working the paper intensive processes. HSD is leveraging Federal Financial Participation (FFP) in the amount of $800,000 with matching $400,000 from the Computer Enhancement Fund for a total of $1,200,000. This funding amount supports 1) percentage of the overall project management costs, 2) Hardware, 3) Software, 4) Implementation Services, and 5) a percentage of overall IV&V Services. It is important to note that FFP is only available for the administration of Child Support programs. Page 21 of 43 businesscasefy08doc212.doc
    • SRCA Centralized Electronic Records Repository The records of New Mexico State government are an important resource for citizens as well as public officials. Records play a vital role in managing and operating State government. They document the actions of public officials; provide a record of past events, and the basis for future actions. They document the history of our State and the rights of our citizens. Effectively managing the accumulation of State records in all formats requires procedures, standards, and controls. Without proper management, recorded information and necessary data remains inaccessible and is eventually lost. Records managed systematically are; complete, trustworthy, accessible, and available to serve current and future management needs. When maintained and controlled systematically, records are an asset; when managed in a haphazard manner, they are a liability. The success or failure of State government programs relies heavily on the records and information used as a basis for decisions made by State officials and for compliance with regulations. There are costs associated with not being able to locate needed records in a timely manner, especially during litigation, as well as risks and costs associated with records being retained long past their usefulness. The SRCA FY08 project cost estimates of $1,200,000 are shown in APPENDIX B. Cost Estimates of $1,200,000 for SRCA are very conservative. This funding amount supports 1) a percentage of the overall project management costs, 2) Hardware, 3) Software, 4) Implementation Services, and 5) a percentage of overall IV&V Services. The risk of insufficient funding is a key factor for SRCA. Less than $1,200,000 in funding will not support a viable solution. In addition, SRCA has submitted a request for additional FTE’s as part of their FY08 IT Plan for the administrative and operational support of the integrated Centralized Electronic Records Repository. Recognizing the many problems that exist in how agencies currently are managing electronic records the SRCA will require additional records management staff to promote awareness and education about the statutory requirements for sound records management. Additional records management staff are also needed to support the integrated Centralized Electronic Records Repository and to ensure the successful implementation of ECM within State agencies. Effective electronic records management will require the cooperation and coordination of expertise from legal/compliance, records management and information technology. Additional staff is required by the SRCA to institute a coordinated enterprise approach and training for electronic records management. Taxation and Revenue Department – REAL ID Act The REAL ID Act requires that States must keep digital copies of identification documents ranging from birth certificates to utility bills. An Enterprise Content Management (ECM) solution is the obvious choice for storing these digital images. The benefits provided by the ECM solution support: • Compliance with federal regulations; • Document management including indexing and search capabilities; • Audit trails for document check-in and check-out; • Security for digitally stored personal identification documents; • Maintaining records authenticity; • Archival records management. Page 22 of 43 businesscasefy08doc212.doc
    • Cost Estimates of $300,000 for TRD are based on the assumption that the primary funding sources for REAL ID implementation come from other legislative and federal funding. This requested funding amount supports ECM Project costs directly related to REAL ID implementation and includes: 1) a percentage of overall ECM project management costs; 2) software; and 3) contract services for ECM Implementation. Software costs of $100,000 support Hummingbird Document Management software licensing. This provides for an additional 400 staff workstations distributed across 90 field offices to access digital documents in complying with the REAL ID Act. The risk of insufficient funding is a key factor for TRD. Less than $300,000 in funding will not support a viable document management solution for the REAL ID federal requirements. GSD Risk Management Division The benefits of implementing Enterprise Content Management solutions for the GSD Risk Management Division (GSD/RMD) include: • Increased efficiency and productivity through a well managed records environment; • Optimize business processes, decreasing number of steps, saving time; • Lower the cost of government; • Improved service delivery to constituency This total cost estimate for the GSD/RMD FY08 ECM project is $1,100,000. The funding is proposed to come from two sources: A. The GSD Risk Management Division intends to obtain approval to transfer $1,000,000 from the Risk Management Reserves to provide for Enterprise Content Management solutions. This funding amount supports 1) hardware, 2) software and 3) ECM implementation services. B. General Fund appropriation in the amount of $100,000. This is to avoid the burdensome option of transferring funds from GSD to HSD serving as the lead agency. This requested funding amount supports: 1) a percentage of overall ECM Project Management and 2) a percentage of overall IV&V services. The risk of insufficient funding is a factor for the GSD/RMD ECM Project. Without the $100,000 funding, the GSD/RMD ECM project most likely go forward, but without the current ECM Project experience and lessons learned. On the other hand, there is the burdensome option of agency fund transfers from GSD to the ECM Project Lead Agency - HSD. The GSD Risk Management Division is actively working with the current ECM Project in alignment with the IT Enterprise Architecture and IT Consolidation objectives. Page 23 of 43 businesscasefy08doc212.doc
    • Office of the State Engineer and Interstate Stream Commission The Office of the State Engineer has the Data Capture Web based software from Datacap, Inc. and FEITH Document Database (FDD) from FEITH Systems and Software. The FDD systems have resolved some issues for some OSE Bureaus/Programs. T he OSE/ISC wishes to continue correcting the following problems through implementation of Enterprise Content Management solutions in alignment with the NM IT Enterprise Architecture: • The lack of disaster recovery in the event of destruction of files; • Productivity losses caused by lost or misplaced files and file out conditions which cause lengthy searches; • Manually intensive and slow retrieval of files; • Inability to provide a quick response to customer calls; • Paper files which are taking up an increasing amount of space; • Lack of adequate file security. The OSE / ISC and management's recommendation is to migrate to an integrated document imaging, document management, web content management and records management system to address problems with the current FDD system. The OSE / ISC identify the following benefits with implementing an integrated ECM solution: • Provide improved services to customers; • Provide disaster recovery of the records system; • Increase productivity of clerical, professional and management staff; • Increase revenue; • Reduce space requirements; • Avoid costs due to lost documents (legal); • Preserve water right documents; • Preserve New Mexico's water future; • Provide integration and access to OSE/ISC files and data systems from individual workstations and Internet users. Cost Estimates of $800,000 for OSE are very conservative. This funding amount supports $200,000 for contract services for an initial needs assessment. The remaining $600,000 is allocated to a proposed small OSE scope to be defined by the Needs Assessment. Cost allocations include, 1) percentage of the overall project management costs, 2) hardware, 3) software, 4) implementation services, and 5) IV&V services. The risk of insufficient funding is a key factor for OSE. Less than $800,000 in funding will not support a viable solution. Department of Public Safety The Department of Public Safety (DPS) recommendation for FY08 is for the DPS to procure contract services to perform a needs assessment for electronic document management and electronic records management. The outcome of the needs assessment is a prioritized plan for implementing ECM solutions within the DPS. Cost estimates of $200,000 for DPS supports contract services for an initial needs assessment and a percentage of overall project management costs. The needs assessment completed in FY08 prepares DPS to begin implementing ECM solutions proposed for FY09. Page 24 of 43 businesscasefy08doc212.doc
    • New Mexico Corrections Department The New Mexico Corrections Department (NMCD) desired outcomes include improving productivity, achieving cost savings, and improving service delivery to constituents through the implementation of Enterprise Content Management solutions in alignment with the NM IT Enterprise Architecture. The total estimated cost for the NMCD Assessment Study is approximately $270,000. Cost allocations include, 1) $150,000 for the Business Needs Assessment; 2) $50,000 for the IT Infrastructure Assessment; $50,000 for contract project management costs; and 4) $20,000 for IV&V services. This study should identify the costs associated to become partners with other state agencies in developing this resource for the state enterprise system. Statewide Benefits available during FY09 and beyond During FY07 and FY08 a “cookie cutter” implementation strategy and approach is being developed that each agency can customize for their Enterprise Content Management solution. For the FY09 funding cycle and beyond, each agency can build upon the ECM framework to meet their specific needs including implementing their document management, workflow management, and web content management components. Another ECM component is Email Archiving; this proposed initiative must be managed from an enterprise perspective. The following programs have expressed interest: • An integrated Social Services Architecture (SSA) can utilize E-Forms and Web Content Management components of the ECM solution. State constituents will be able to complete one form on the Web to determine eligibility. The ECM solution also provides pre-packaged integrations with third party and legacy applications so that the back-end systems can be integrated for eligibility determination, such as Income Support (ISD2) and Medical Assistance (Omnicaid), as well as a checkpoint with Taxation Systems. • In February 2006, the New Mexico Environment Division-Drinking Water Bureau (NMED- DWB) began a pilot project with the State Records Center and Archives (SRCA) to develop a comprehensive records management system. The NMED-DWB objectives are to implement the Electronic Document Management solutions for chemical and bacteriological records of the Environmental Health Division’s Drinking Water Bureau (EHD-DWB). The primary benefit is expediting regulatory compliance data to staff, while a secondary benefit is the reengineering of the existing associated record processes. • The Children, Youth and Families Department (CYFD) expressed interest in developing a CYFD Portal using Hummingbird & Red Dot Web Content Management tools. This initiative is proposed for FY09. • The proposed ECM Application Standards and Guidelines, as well as the ECM Enterprise Architecture Design address the needs of New Mexico agencies currently operating Enterprise Content Management solutions. There are at least ten agencies with various types of document imaging and document management solutions. These agencies have the opportunity to integrate their systems into the overall enterprise model. Page 25 of 43 businesscasefy08doc212.doc
    •  The NM Department of Transportation (DOT) implemented FileNet in 1998 and currently runs a robust document management operation. Many NMDOT documents have a retention cycle of 500 years (permanent); these include State highway construction maps. At this time, NMDOT is imaging backlog documents.  At least five other agencies have implemented FileNet, including the Department of Finance and Administration (DFA), Public Employees Retirement Association (PERA), and the State Land Office (SLO).  The State’s Energy, Minerals and Natural Resources Department (EMNRD) developed a document management system in SQL Server using .tiff images. • The Second Judicial District Court and other District Courts are implementing Hummingbird ECM solutions. Eventually, the Executive Branch ECM will need to access documents from the Judicial ECM and vice versa. For example, The Child Support Enforcement Division depends on receiving the child support court orders from the NM Courts. The Motor Vehicle Division depends on receiving Driving While Intoxicated (DWI) convictions from the NM Courts. Currently both of these processes are paper-based and time consuming. The long-term vision for the State of New Mexico Enterprise Content Management solution is a dynamic and static repository for each State agencies web content, documents and document workflows integrated with the State Portal. ROI Discussion The ECM framework consists of three major categories: create and capture, manage and archive, and retrieve and deliver. Create and capture ROI focuses around the number of documents processed, number of hardware devices, and the associated cost. Manage and archiving functions yield ROI from cost of hardcopies saved, person-hours saved in document processing, costs saved with associated risk of document and data loss, and compliance penalty cost. Lastly, the retrieval and delivery function provides a compelling ROI based upon number of applications processed, claims handled, invoices processed, and State constituents served. One of the difficulties is in obtaining benchmarks before the system is implemented, the absence of which makes it impossible to measure the ROI. Some areas where cost savings can be found include decreased cost for physical and electronic storage, decreased numbers of steps in processes, time saved for information workers, the ability to outsource a now totally electronic workflow, and the enablement of customer self-service. Thus, content technologies often result in substantial value on the investment (VOI) in content management.8 VOI is an expanded view of value that includes financial ROI plus many forms of non-financial value, such as reuse, sharing and leveraging the knowledge embedded in the State’s content. Tangible ROI is measured in bottom-line dollars saved—determining metrics of current practices as a baseline, setting goals, and measuring against those goals. Paper processes can cost as much as 24 times electronic—measuring how long it takes to process paper today, setting a clear savings objective, and measuring again after automation. Dramatic time-savings, and increased service to State constituents can be achieved. Measuring intangible return by tying content management deployments to a specific initiative that has metrics of success—for 8 “Client Issues for Enterprise Content Management, GARTNER Research, 3 May 2005 Page 26 of 43 businesscasefy08doc212.doc
    • example, being able to deliver a document to a constituent in 3 - 5 seconds instead of 3 - 5 days will yield measurable improved service to the constituents. In a recent Open Archive Inc. white paper, authors Sandy Schiele and Betsy Delfosse note impressive statistics and savings. BAE Systems conducted a study that discovered that 80 percent of employees waste an average of half an hour per day retrieving information, while 60 percent are spending an hour or more duplicating the work of others. More statistics supporting the need for document management include: • “Ninety percent of corporate memory exists on paper, • Ninety percent of all the pages that get handled each day in the average office are merely shuffled, • The average document gets copied 19 times, • Companies spend $20 in labor to file a document, $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document, • Seven and a half percent of all documents get lost, • Three percent of the remainder get misfiled, • Professionals spend 5-15 percent of their time reading information, but up to 50 percent looking for it.”9 Estimates are that efficiencies using modern electronic document management systems and software would result in: • “A 75 percent reduction in time spent locating and retrieving documents, • A 75 percent reduction in time spent filing, • A 50 percent reduction in copying costs, • A 75 percent reduction in off-site storage costs, • A 75 percent reduction in on-site storage costs, • A 50 percent reduction in overnight shipping expenses, • A 50 percent reduction in filing supply expenses.”10 PNM: ROI = 105% and Payback Period = 11 months The Public Service Company of New Mexico implemented the Hummingbird Document Management system in 1998. PNM “has achieved a positive ROI by reducing customer support costs, decreasing the need for off-site storage, retiring its outdated microfiche system, and boosting the productivity of employees across different departments.” An independent company, Nucleus Research, “quantified the costs of software, hardware, consulting, personnel, training, and other investments over a 3-year period to quantify PNM’s total investment in Hummingbird.”11 Their research indicates an ROI of 105% with a payback period of 11 months for PNM. 9 "Return on Investment Sells Document Management to Executives: An Open Archive Paper" by Sandy Schiele and Betsy Delfosse, original data from Coopers & Lybrand (Source: Immersion Technologies, Inc)., http://www.openarchive.com/articles_home.htm 10 "Return on Investment" Sandy Schiele and Betsy Delfosse, http://www.openarchive.com/ 11 “ROI Case Study: Hummingbird Public Services New Mexico,” Nucleus Research, Inc. www.NucleusResearch.com, http://www.hummingbird.com/collateral/plugin/category.html?metaConceptId=1041&contentId=54691&language=1&contentIndex=45907 Page 27 of 43 businesscasefy08doc212.doc
    • Implementation Approach and Timeline The Implementation Approach consists of a strategy statement, project work categories, project governance and resource assumptions. Strategy Statement Developing a project strategy is a process of choosing an approach to the work that maximizes strengths, minimizes weaknesses, takes advantage of opportunities and mitigates threats while balancing the anticipated cost and potential benefit. A good strategy will minimize risk while maximizing return on investment. The strategic direction is to implement the ECM solution that integrates Electronic Document Management with Electronic Records Management using Hummingbird ECM software. The Hummingbird ECM Commercial-Off-the-Shelf (COTS) software product has demonstrated its effectiveness in the marketplace. Using a package strategy rather than a custom development strategy has been proven effective in many situations, and is a common strategy in both the private and public sectors. A package strategy however, is not without its own risks. As a whole, the Information Technology (IT) industry has found the implementation of Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM) and other large-scale automation packages to be very difficult in many situations. Many of the high profile IT project disasters documented by the IT trade press over the years have involved the implementation of software packages. The question then is how to take advantage of a software package strategy while avoiding the potential pitfalls that have plagued so many other package implementations over the years. The project strategy is based on the strategic direction established by the EDMS Executive Steering Committee, and the lessons learned from others in the Information Technology industry that have implemented package software. Four principles guide the project strategy, 1) project management, 2) well-defined objectives, 3) support extensibility and 4) rapid implementation: Project Management One of the common factors identified, as a contributing cause of many IT project failures is the lack of effective project management. The State of New Mexico is implementing project management programs both in the State Office of the Chief Information Officer (OCIO) and in each of the Departments. This project will adhere to project management standards of practice as being implemented within State government and specified by the Project Management Institute (PMI) in their Project Management Body of Knowledge (PMBOK) guidelines. According to the Project Management Body of Knowledge: “Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project objectives. Project Management is accomplished through the use of the processes such as initiating, planning, executing, controlling, and closing. The project team manages the work of the projects, and the work typically involves: Page 28 of 43 businesscasefy08doc212.doc
    • • Competing demands for: scope, time, cost, risk and quality; • Stakeholders with differing needs and expectations; • Identified requirements. “It is important to note that many of the processes within project management are iterative in nature. This is in part due to the existence of and the necessity for progressive elaboration in a project throughout the project lifecycle, i.e., the more you know about your project, the better you are able to manage it.” The discipline of the project management concept offers a variety of tools and techniques to deal with and control complex projects. The State of New Mexico is implementing the Project Management concept at the State level and within each department as part of a strategy to better manage and coordinate the State’s information technology resources and budget. HSD already has a robust Project Management Bureau in place that fully supports the ECM Project. Well-defined Objectives The project must be tightly focused on a well-defined set of objectives. The “keep it simple” approach minimizes risk and implementation time. It empowers the team to concentrate on those objectives that offer the maximum return on the invested time and effort while allowing the team to spend adequate time and energy on validation, testing and documentation – tasks that are the first to be sacrificed in a more complex and drawn out implementation plan. The net result is a successful package implementation on which further development and enhancements are more likely and have a better chance of ultimate success. Support Extensibility Extensibility means the system is designed to easily allow the addition of new features later, using hooks, an Application Programming Interface (API) or plug-ins. The Hummingbird Enterprise Content Management software solutions are designed to support the addition of new features as needed. This allows New Mexico agencies to start with a limited subset of functionality, limiting initial costs, with the option to expand to greater functionality in the future. Rapid Implementation Faster implementation is better than drawn out implementation. Solutions that require too long to implement, have a high risk of failure. Administrations change, business needs change and solution requirements change. Time is the enemy. Successful package implementations are fast implementations, even at the expense of some functionality. An 80% solution today is far superior to a 100% solution that requires 2 years to implement. Fast implementation allows for taking advantage of the Pareto Principal; 80% of the benefit comes from 20% of the solution. The additional 20% of the benefit that might be achieved comes at a dramatically higher price and extended schedules. Page 29 of 43 businesscasefy08doc212.doc
    • Project Work Categories The project implementation strategy is developed from the perspective of products to be delivered. Each of the major activities required to implement the ECM (EDMS/ERMS) is broken down into project work categories and has specific associated deliverables. This is also known as the Work Breakdown Structure (WBS.) It is important to note that these work categories are scalable for each agency. The ECM project work categories are expandable for large complex projects and simplified for small well- defined projects. For example, some agencies may have already completed a Needs Assessment; therefore, this activity is greatly simplified. Some agencies may already have an established ECM solution in place. To plug into the Centralized Electronic Records Repository, at a minimum, the agencies Specific Metadata Standards require analysis for compliance with the standards for the Centralized Electronic Records Repository. At a high level, an ECM project is organized into the following separate work categories: • Project Management • Business Needs Assessment • Agency Infrastructure/IT Enterprise Architecture Assessment • Business Process Management • Analyze agency Record Series • Define agency Specific Metadata Standards • Design the ECM solution to meet the Business Needs • Design the Application & Technology Infrastructure • Imaging System Plan Approved by SRCA • Integration, Implementation and Training Each of these work categories also known as the Work Breakdown Structure (WBS) is discussed briefly below: Project Management Successful IT project management requires project planning, effective team building, issue and risk management, good communication, quality assurance and tenacity. The environment in which the Enterprise Content Management framework must be implemented is both high profile and complex. The project is a joint agency effort across multiple business processes. The technology being implemented requires the expertise of external consulting resources however; the responsibility of supporting the technology will be transitioned to internal State resources. In addition, successful implementation of Enterprise Content Management solution components requires the participation and support of the business owners within the participating agencies. Without their participation and support, the system will not achieve its objectives. Page 30 of 43 businesscasefy08doc212.doc
    • Business Needs Assessment The goal of this step is to gather basic information on what content, documents and records the system will (and will not) manage. Defining the scope will establish what end users can expect the system to accomplish. Agencies must identify the various types of agency-specific records that are created. The result of the needs assessment determines the project priorities and scope. Stakeholders include department bureau chiefs leading Agency Infrastructure/IT Enterprise Architecture Assessment This step involves identifying the unique agency infrastructure or architecture that could result in unique requirements for the ECM system. Agencies need to align with an enterprise-wide IT architecture that provides the baseline for the existing infrastructure and lays the foundation for future infrastructure improvements. Any ECM system must fit within the existing infrastructure as well as the IT enterprise architecture. Business Process Management Content, documents and document management are inherent within agency business processes. Reengineering the business processes in State Government is fundamental to implementing ECM. A process is a group of tasks that together create a result of value to a customer or a State constituent. As the reengineering expert, Michael Hammer writes, “Processes are concerned with results, not with what it takes to produce them. The essence of process is its inputs and its outputs; what it starts with and what it ends with. Process work requires that everyone involved be directed toward a common goal; otherwise conflicting goals and parochial agendas impair the effort.”12 Moving towards a process-oriented culture, is training everybody in habits of thinking and acting that allow the whole organization to work more smoothly and effectively. The question to be asked continuously is, “How do we improve our day to day process?” For agency business processes, the first step in Business Process Management is mapping the current - ‘As-Is’ workflow. Often, a few improvements are identified just through the process of mapping the ‘As-Is’ workflow. The next step is developing the ‘To-Be’ workflow based on designing the ECM solutions that meet the business needs. Another key objective in Business Process Reengineering is change management. This refers to determining the readiness of an agency for change, and methods for mitigating change resistance. Analyze Agency Records Series A pre-requisite to developing agency unique metadata is to analyze the agency records series. The Records Management Division within SRCA performs services to include: • Reviewing NMAC policies and statutes; • Analyzing Security policies, including policies and procedures for protection of documents and records; • Analyzing the Agency specific Record Series; • Recommending updates for Schedules - Disposition and Retention. 12 Michael Hammer, Beyond Reengineering (HarperCollins, 1996), 11-12 Page 31 of 43 businesscasefy08doc212.doc
    • Define Agency Specific Metadata Standards The New Mexico EDMS Project Metadata Standards are a resource to create information elements for records that will facilitate their management, preservation, and retrieval. This common vocabulary enables access to information residing in multiple sources and re-use in multiple applications. The purpose of metadata standards is to create a basic common vocabulary and guidelines to create function-specific informational elements. The creation of these standards has been driven by the following principles: • Based on existing national standards; • Informed by analysis of current workflow and data model; • Cross-referenced with related national standards to ensure inter-operability within the EDMS and other systems; • Driven by user needs. As each agency plans to implement document imaging, the department should review the suggested index field guidelines (ANSI/AIIM TR40-1995). These guidelines provide detailed information that should be considered when planning the indexing requirements for all documents being added or exported to the ECM and the Centralized Electronic Records Repository. Establishing all the necessary index values prior to system implementation greatly improves the value and quality of information being scanned and stored in the system. Design the ECM Solution to meet the Business Needs There are pre-requisites to designing the ECM solution. These include developing the ‘As-Is’ workflow, records analysis and defining the agency specific metadata standards. The next step is designing the ECM solution to meet the business needs, and mapping the ‘To-Be’ workflow. Experts in integrating the ECM software solutions must be contracted to design the solution. Design the ECM Application & Technology Infrastructure The strategy for designing the application and technology infrastructure for the ECM must necessarily consider the enterprise architecture. ECM is just one component of the overall enterprise model. Extensibility, flexibility and scalability are the criteria that must be used to ensure that the architecture for ECM that is implemented now can also support the enterprise architecture that is evolving over the next few years. Appendix A discusses and diagrams architecture recommendations from a conceptual perspective. Imaging System Plan Approved by SRCA Each program implementing document imaging is required to develop an Imaging System Plan, approved by the State Records Center and Archives. The plan must describe the system goals and objectives; managerial planning for policies, procedures, future migration and disaster recovery; as well as technical specifications for the hardware and software. Page 32 of 43 businesscasefy08doc212.doc
    • Integration, Implementation and Training After the ECM hardware and software is purchased, it is installed and integrated with the existing infrastructure. Automated workflow can be set up and integrated with the ‘To- Be’ solution design. Then the system is tested to meet quality assurance standards. The objective is to support IT consolidation working with GSD/ISD to implement the technology infrastructure and ECM application. The initial ECM implementation will be used to gain additional knowledge about the product, its operational environment and to help the project team develop an enterprise model for the State of New Mexico, prior to expanding ECM implementation to additional agencies and divisions. Training for the system users, system administration and technical support staff is essential for successful implementation. Supporting Organizational Infrastructure The effective operation and support of a large software application requires formal organizational thought and structure. Enterprise Content Management will require more organizational thought than most because it is one component of an enterprise model. The strategy is to provide State resources as the organizational staff necessary to support the ECM application while working to refine the Enterprise Content Management governance model. Enterprise Model The Enterprise Model will define an ECM strategy that supports all content types and formats over the entire life cycle. Enterprise Content Management, and an Integrated Electronic Document and Records Management Systems framework is just one component of an Enterprise Model allowing the State of New Mexico to move towards interoperability and a fully electronic services interface for technology-enabled customers. Another component of an enterprise model includes Enterprise IT Data Interchange capability, to allow instant online access to information across multiple application systems. A pre-requisite to any type of enterprise-wide access to applications and data is an Enterprise IT Security Management Program, which includes Enterprise Identity Management, and Access Directory Services. A third component is the Business Process Platform, “As enterprises emphasize business processes, they need to establish a business process platform, specific to their needs, to enable business process creation, deployment and monitoring using service-enabled applications.”13 A Service Oriented Architecture (SOA) is the foundation supporting the enterprise model. Governance and Resource Assumptions HSD, TRD and SRCA currently administer the ECM-EDMS Project in a joint effort. Since HSD has the infrastructure and administrative capacity to manage large projects, HSD acts as the lead agency for this project. The State Office of the Chief Information Officer (OCIO) and the IT Commission provides project management oversight and the EDMS Executive Steering Committee provides strategic direction for the project. Agencies committed to Enterprise Content Management are invited to participate as voting members in the ECM-EDMS Executive Steering Committee. 13 “Flexibility Drives the Emergence of the Business Process Platform” GARTNER Research, Publication Date: 26 April 2005 Page 33 of 43 businesscasefy08doc212.doc
    • The ECM-EDMS Executive Steering Committee (ESC) provides strategic, high-level guidance with regard to procedures, progress, and risks. The Steering Committee is charged with taking an enterprise view to ensure this project supports the delivery of an enterprise model. Membership of the Steering Committee is comprised of representatives from the participating State agencies. The Project Director reports status and progress to the Steering Committee on a regular basis. The ECM-EDMS ESC also reviews, and approves deliverables, monitors the activities of the Project Team, assures adherence to the project plan and ensures involvement of participants in order to meet deadlines. The project teams handle the day-to-day tasks and decisions brought to the attention of the Steering Committee. The project teams are comprised of State personnel from the participating agencies. Tasks performed by the team include: project management and planning, analyzing requirements, data gap analysis and data mapping, making program specific decisions, helping determine the system and operational processes, business process reengineering, developing an Imaging System Plan approved by SRCA, metadata development, training and deployment. With the ECM infrastructure centralized at GSD, there is an opportunity for the GSD/ISD team to develop a data center model. This supports Governor Richardson’s IT Consolidation objectives. The Office of the Chief Information Officer (OCIO) and the IT Commission will provide increased emphasis on strategic information technology planning and management. This ensures the proper and efficient administration of all Information Technology projects in the State. Independent Validation and Verification (IV&V) Independent Validation and Verification (IV&V) is a risk mitigation strategy designed to provide management with project oversight through an independent evaluation a project’s product and process quality. The New Mexico Enterprise Content Management project has adopted a low risk implementation strategy by using a package solution that is currently implemented in multiple commercial and government sites. Given that the project has adopted a package solution strategy, its IV&V plan will be tailored to address the unique risks associated with package implementation projects. The IV&V plan will: • Evaluate and verify that processes, contracts, and system designs comply with the specified requirements of the Enterprise Architecture and Standards • Evaluate and validate that products and deliverables of a given development phase fulfill the requirements and performance outcomes set forth in the scope and project plan • Provide a “close-out” report to the Executive Board at the end of each project. The IV&V vendor will develop a complete IV&V plan in conjunction with the project implementation team. Project Timeline The project timelines for FY05-FY06, FY07 and FY08 are shown in Appendix C. Page 34 of 43 businesscasefy08doc212.doc
    • Recommendation The recommendation is to continue supporting the ECM Executive Steering Committee and additional agency Executives direction to implement the Commercial-Off-The-Shelf (COTS) Enterprise Content Management (ECM) solution for the State of New Mexico. Page 35 of 43 businesscasefy08doc212.doc
    • APPENDIX A – Conceptual Architecture An integration vendor based in Denver, 5280 Solutions, LLC, designed the enterprise-wide ECM architecture for the State of New Mexico in June 2006. The enterprise model defines an ECM strategy that supports all content types and formats over their entire life cycle. As shown in the diagram on the following page, the Centralized Electronic Records Repository is central to an integrated approach for the capture, maintenance, storage, access, disposition and preservation of electronic records. The Centralized Electronic Records Repository (CERR) or SRCA Records Repository is located at the center of the diagram shown on the next page. Agency records classified at their point of creation or capture can be virtually managed through SRCA controlled file series and retention schedules. As the CERR Administrator, SRCA has the authority to create centralized rules that are replicated in records libraries at the agency hosted document repositories. In turn, agency records can be predicatively transferred to their “sister” SRCA repository based on chronological or vital requirements. Agency staff will have the ability, based on their authorizations, to review their transferred records using web access. Agency staff will be able to search both agency and SRCA hosted libraries for records. The ECM architecture shows Identity Management and Security as the foundation for the CERR. Agency users must first be authenticated, proving they are who they say they are. An authenticated user is then authorized to work with selected content or records; the user’s permissions determine their authority to view, change, delete or add content within the repository. Disaster Recovery and Business Continuance is also an architecture design foundation for the ECM and CERR. All types of content and documents created and/or captured by NM State agencies are specified in the architecture design for the ECM and the CERR. This includes email, faxes, reports, web pages, and Microsoft Office documents. Page 36 of 43 businesscasefy08doc212.doc
    • Enterprise Conceptual View of ECM (EDMS/ERMS) Components and CERR Creation and Classification Administration Process Support Capture Management Content /Revision Management Search, Consume /Edit and Utilize - Scanning - Secured, classified, audited , compliant retention - Automated Batch Import (e-mail, fax, other EDMS, reports ) DM - Desktop authoring /save (e-mail, Office docs, web-pages ) Document Managememt API Records Management Search Consume/Edit Utilize Desktop “Ad-Hoc” Contribution Web Content Management Agency Publish E-Mail ----------- Document Authoring Agency Document and C screens Office Tools ----------- WebPage-Editor Web-Page Authoring Records Repository KnowledgeO ----------- Image Scanning EDMS Predictive Records ManagementM Client Retention Rules XFER Report Batch Image Scan & Process Repository / Scan Source D XFER Scanner - Scanning Database Printer - Data Extraction C Search Files Web-Sites O Scan-enable app - Data Validation multiple - Transformation M info SRCA E-Mail - Release to EDMS & sources Fax Server Records External systems Repository External Management system Retention Period Reporting Batch Collect & Categorize Records Series and ----------- Records Retention ----------- Distributed E-Mail ----------- Schedule External Capture Documents & Records Internal Management Images CERR Collaborate (Unstructured Process) Business Process / Workflow Management Structured Process Actions Centralized Rule Set Structured Process Management Exchange External Records EDMS XFER - Business rules Process Host - Process rules Internal and Remote Identity Management and Security Disaster Recovery and Business Continuance Enterprise ECM Architecture - Item 1.6 May-2006 v1F Page 37 of 43 businesscasefy08doc212.doc
    • APPENDIX B – Financial Estimates FY05, FY06 & FY07 Financials FY05/FY06/FY07 ECM-EDMS Estimated Budget - All Phases (Total Budgeted $2,000,000) Phase 1 - Needs Assessment (Total Budgeted = $240,000) Phase 2 - Implementation (Total Budgeted = $1,734,073) Phase 3 - Project Closeout (Total Budgeted = $25,927) Phase 2 and 3 - FY06 into FY07 (Total Budgeted = $1,760,000) Federal Financial Participation ($800,000 FFP) + Matching Computer Enhancement Fund ($400,000 CEF) = $1,200,000 66% Federal Financial Participation ($800,000 FFP) 33% Matching Computer Enhancement Fund ($400,000 CEF) Total FFP = 1,200,000 - Note: FFP is only available for the administration of Child Support programs Total Budget for Phase 2 and 3 including FFP and Additional CEF 68% Federal Financial Participation = $1,200,000 32% Additional Computer Enhancement Fund (CEF) allocated to TRD = $560,000 Total Budget = 1,760,000 Phase I <== Phase 2 ==> <== Phase 3 ==> <== FY06 & FY07 Totals ==> All Phases 100% State FFP Org CEF Org Total FFP Org CEF Org Total FFP Org CEF Org Total Total Funds FY05 HSD funds TRD funds Phase 2 HSD Funds TRD funds Phase 3 HSD funds TRD funds FY06/FY07 Budgeted 200 Personnel Services/Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 300 Contractual Services Needs Assessment $180,000 $180,000 Project Director $59,585 $163,118 $76,122 $239,240 $17,678 $8,250 $25,927 $180,796 $84,371 $265,167 $324,752 EDMS Implementation Team $444,858 $170,173 $615,031 $444,858 $170,173 $615,031 $615,031 IV&V Services $81,818 $38,182 $120,000 $81,818 $38,182 $120,000 $120,000 $239,585 $689,795 $284,476 $974,271 $17,678 $8,250 $25,927 $707,472 $292,726 $1,000,198 $1,239,783 400 Equipment and Supplies Office Supplies $415 $415 Hardware $272,726 $127,274 $400,000 $272,726 $127,274 $400,000 $400,000 Software $219,802 $140,000 $359,802 $219,802 $140,000 $359,802 $359,802 $415 $492,528 $267,274 $759,802 $0 $0 $0 $492,528 $267,274 $759,802 $760,217 500 Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $560,000 Total $240,000 $1,182,323 $551,750 $1,734,073 $17,678 $8,250 $25,927 $1,200,000 $560,000 $1,760,000 $2,000,000 Page 38 of 43 businesscasefy08doc212.doc
    • FY08 Financial Estimates FY08 ECM-EDMS Estimated Budget - All Phases (Total Budgeted $5,070,000) Phase 1 - DPS & OSE Needs Assessment (Total Budgeted = $670,000) OSE $200,000 DPS $200,000 NMCD $270,000 Total FY08 Phase 1 = $670,000 Phase 2 - Implementation (Total Budgeted = $4,386,446) Phase 3 - Project Closeout (Total Budgeted = $13,553) Phase 2 and 3 - FY08 (Total Budgeted = $4,400,000) Federal Financial Participation ($800,000 FFP) + Matching Computer Enhancement Fund ($400,000 CEF) = $1,200,000 66% Federal Financial Participation ($800,000 FFP) 34% Matching Computer Enhancement Fund ($400,000 CEF) Total FFP = 1,200,000 - Note: (FFP is only available for the administration of Child Support programs) Total Budget for Phase 2 and 3 including FFP, Additional CEF, plus Risk Management Reserves transfer 27% Federal Financial Participation = $1,200,000 73% CEF & Risk Management Reserves allocated to SRCA,TRD,GSD/RMD,OSE = $3,200,000 SRCA $1,200,000 TRD $300,000 GSD/RMD $1,100,000 OSE $600,000 Total FY08 Phase 2 & Phase 3 = 4,400,000 Phase I <== Phase 2 ==> <== Phase 3 ==> <== Phase 2 & 3 Totals ==> All Phases 100% State FFP Org CEF Org Total FFP Org CEF Org Total FFP Org CEF Org Total Total Funds HSD funds Phase 2 HSD Funds Phase 3 HSD funds Ph 2 & 3 Budgeted 200 Personnel Services/Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 300 Contractual Services OSE, DPS & NMCD Assessment $595,000 $595,000 Project Director $75,000 $40,466 $74,189 $114,655 $4,783 $8,770 $13,553 $45,250 $82,958 $128,208 $203,208 Project Manager $45,882 $84,118 $130,000 $45,882 $84,118 $130,000 $130,000 ECM Implementation Svcs $400,000 $1,414,301 $1,814,301 $400,000 $1,414,301 $1,814,301 $1,814,301 IV&V Services $60,000 $110,000 $170,000 $60,000 $110,000 $170,000 $170,000 $670,000 $546,349 $1,682,607 $2,228,956 $4,783 $8,770 $13,553 $551,132 $1,691,377 $2,242,509 $2,912,509 400 Equipment and Supplies Office Supplies $882 $1,618 $2,500 $882 $1,618 $2,500 $2,500 Hardware $382,037 $489,357 $871,394 $382,037 $489,357 $871,394 $871,394 Software $583,596 $700,000 $1,283,596 $583,596 $700,000 $1,283,596 $1,283,596 $0 $966,515 $1,190,975 $2,157,490 $0 $0 $0 $966,515 $1,190,975 $2,157,490 $2,157,490 500 Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total $670,000 $1,512,864 $2,873,582 $4,386,446 $4,783 $8,770 $13,553 $1,517,647 $2,882,353 $4,400,000 $5,070,000 Page 39 of 43 businesscasefy08doc212.doc
    • APPENDIX C – Project Timelines Enterprise Content Management (ECM) Project Also Known As Electronic Document Management System (EDMS) 8/24 RFP Project Timeline FY06 submitted for EDMS ESC Today 9/13 Approval RFP (2nd Draft) 6/23/2006 submitted for EDMS ESC EDMS ESC Approval of Approval Architecture Design 10/5 rd RFP (3 Draft) submitted for 6/30/2005 EDMS ESC Advanced Planning Develop Approval 10/28 11/21 - 1/13 6/7 - 6/21 Document Submitted RFP RFP (4th Draft) RFP Hold - Issues Logical Physical 7/14 - 8/23 Submitted for Architecture Design Architecture 6/7/2005 EDMS ESC Professional Services Design Approval Contract Approval Needs Assessment Completed (Optimos) 1/21 - 6/7 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul May 1, 2005 Enterprise 3/27/2006 - 8/18/2006 Jul 31, 2006 10/6/2005 - 1/6/2006 Requirements MVD Business TRD/RPD/MVD Workshops Practices Assessment Workflow Mapping 7/25 - 8/19 Joint Powers Agreement Approved 2/15/2006 - 6/20/2006 6/8/2005 HSD/ASD-SDU/CSED Change Management EDMS Project Manual (PMP) Approved by ESC 9/29/2005 - 1/30/2007 6/24/2005 SRCA Process Reengineering - EDMS Application Conceptual Architecture Standards and Draft Plan Metadata Standards 12/16/2005 Page 40 of 43 businesscasefy08doc212.doc
    • Enterprise Content Management (ECM) Project Also Known As Electronic Document Management System (EDMS) Project Timeline FY07 Today IV&V 10/3/2006 - 4/16/2007 Procurement : Professional Services TRD Integration & Implementation - Integration & Implementation 10/9/2006 - 3/12/2007 - IV & V 6/22/2006 - 9/29/2006 HSD Integration & Implementation 10/30/2006 - 4/24/2007 Update Draft HSD/ASD-SDU/CSED HSD/ASD-SDU/CSED Imaging System Plan Procedure Manuals 11/1/2006 - 3/1/2007 5/7 - 6/12 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun May 1, 2006 Jun 29, 2007 3/27/2006 - 9/22/2006 10/1/2006 - 1/31/2007 2/19 - 3/13 TRD/RPD/MVD Draft TRD/RPD/MVD Update Workflow Mapping Imaging System Plan TRD/RPD/MVD Procedures 4/17/2007 Certification Project Phase 3 Closeout Project Closeout 5/1/2007 - 6/29/2007 9/29/2005 - 1/26/2007 3/26/2007 SRCA Process Reengineering SRCA Approval - EDMS Application HSD/ASD-SDU/CSED Standards and Imaging Plan Metadata Standards Domain Team 2/8/2007 Approval of ECM-EDMS Application Standards SRCA Approval 10/12/2006 - 1/15/2007 TRD/RPDMVD Citation Imaging Plan Page 41 of 43 businesscasefy08doc212.doc
    • Enterprise Content Management (ECM) Project Also Known As Electronic Document Management System (EDMS) 7/17/2007 Project Timeline FY08 10/24/2007 OCIO, PCC & ITC 3/18/2008 EDMS ESC Project Certification Production Release Approval of Design IV&V 6/20/2007 9/7/2007 - 4/12/2008 EDMS ESC SRCA CERR & GSD/RMD Integration and Implementation Approval of PMP 9/10/2007 - 4/9/2008 Design, Update Detail Training Install & Configure Project Hardware & 2/20/2008 - 4/8/2008 Hardware & Software Management SRCA CERR Software Plan (PMP) & GSD/RMD 1/3 - 1/18 Requirements Production 6/1 - 6/15 Procurement : Turnover 9/12 - 10/26 Professional Services 3/17 - 4/7 Process Integration - Integration & Implementation Project Project Team Procurement : & Workflow - IV & V Certification Review & - Hardware Set up Project 7/2/2007 - 9/3/2007 4/22 - 5/20 Agreement - Software 1/21 - 2/18 Testing Closeout 10/1 - 10/16 10/29 - 12/21 2/25 - 3/14 6/2/2008 - 6/30/2008 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 6/1/2007 2/25 - 6/27 6/30/2008 8/1/2007 - 9/27/2007 10/8/2007 - 2/20/2008 OSE Business Process Management , Procure OSE, DPS & NMCD Perform OSE, DPS & NMCD Record Series Analysis and Metadata development Business Needs Assessment Business Needs Assessment 7/2/2007 - 6/30/2008 ECM Project for TRD REAL ID 12/28/2007 5/20/2008 11/12/2007 Certification IT Consolidation Plan Receive Hardware Phase 3 Executive Board Project Closeout Approval Software Page 42 of 43 businesscasefy08doc212.doc
    • ECM-EDMS FY08 Form C2 Information Technology Data Processing - Computer Systems Enhancement Fund or Capital Outlay ECM Agency Code: Agency Name: HSD – HUMAN SERVICES DEPARTMENT Agency Code: 630 Multi-Agency Project Yes: XX No: List agencies participating: SRCA – State Records Center & Archives 369 TRD – Taxation & Revenue Department 333 GSD/RMD – GSD Risk Management Division 350 OSE – Office of the State Engineer 550 DPS – Department of Public Safety 790 NMCD – NM Corrections Department 770 Project Type: New System Development Project Type Specifics: Build (internal resources): Buy (purchase COTS): XX Appropriation Funding Data Processing /Computer Systems Type: Enhancement Fund: XX Capital Outlay Project Start Date: 11/10/2004 Project Cost (dollars in thousands) FY05 & Prior FY06 Actual FY07 OpBud FY08 Request FY09 Estimate General Fund 218.1 49.5 932.4 3,270.0 Other State Funds Interagency Transfers/ 1,000.0 Internal Service Funds (Risk Management Reserves) Federal Funds 96.0 704.0 800.0 Total 218.1 145.5 1,636.4 5,070.0 Expenditure Categories (dollars in thousands) FY05 & Prior FY06 Actual FY07 OpBud FY08 Request FY09 Estimate Actuals Personal Services & Employee Benefits Contractual Services Professional Services IT Services 218.1 145.5 876.2 2,912.5 Other Travel Maintenance Supplies/Inv. Exempt 760.2 2,157.5 Operating Costs Capital Outlay Other Financing Uses Total 218.1 145.5 1,636.4 5,070.0 ________________________________ ______________________ ______________________ Agency Cabinet Secretary/Director CIO or IT Lead Budget Director ________________________________ ______________________ ______________________ Phone number Phone number Phone number ________________________________ ______________________ ______________________ Date Date Date